The self-styled anarcho-capitalist Andreas Kohl, together with a renowned computer scientist Yalislav Malahov intend to recast the current smart contracts foundations. With this particular objective in mind, they have designed a software firm known as Aeternity. According to Malahov, the company’s primary focus is to increase the reliability, speed and the scalability of Blockchains, by processing contracts that are smart in state channels, similar to side-chains. In many of the current systems, all the computations are carried out on the main chain.

According to Malahov, their new Blockchain will potentially offer users a greater opportunity to access tools which are scalable, does not either crash or slow down. Additionally, this particular firm will enable real-world data to flow into the Blockchain, without depending on sources that are centralized.

Libertarian paradise

It is crucial to note that Malahov created Aeternity in Liechtenstein in November. This was after an opportunistic encounter with the Principality’s Prince Michael in Germany, at a tax conference. Prince Michael, whom Malahov said had an intellectual interest in technology involving Blockchain, proposed that Malahov should meet Kohl Andreas, a self-proclaimed libertarian, and an anarcho-capitalist. Malahov learned about the Liechtenstein’s banking industry from Andreas and other local regulators. This was when Mahalov opted to establish Aeternity in the principality. Kohl, who sees Liechtenstein as a libertarian utopia, says that there exist an extraordinary degree of mutual accountability, trust and transparency between the government and entrepreneurs which is not easy to get anywhere else.

Godfather of Ethereum claims

In the last six years, Malahov has worked closely with top thinkers on Blockchains and cryptocurrencies, such as Buterin Vitalik and Gavin Wood, co-founders of Swiss-based Ethereum. In an individual blog post in 2015, Malahov nicknamed himself the Godfather of Ethereum. The post had a transcript of a prompt-messaging conversation with Buterin, meant to verify his crypto-lineage. Malahov even jokes that he was somehow involved in Ethereum before it was named.

Previously, Malahov worked on Bitalias development, which is a Blockchain naming system. He also worked on other entrepreneurial sectors such as McConaghy. Malahov was born in Bulgaria but received his education in Germany. He says that he became aware of economic inequality, effects of financial market turmoil at a tender age, after the collapse of the Eastern Block. He says that he often thought that something was not right. The financial problems which he came across only verified the point that Blockchain technology was perhaps the next huge step we needed to take as human beings. Bearing in that a larger proportion of the world’s population is not yet banked, Malahov concludes that the creation of Blockchain technology is one of the greatest opportunities available to them now to access the current financial systems.

Competitive Sector

Mahalov says that the biggest competitors of Aeternity are Synereo, Gnosis, and Ethereum, which are the largest cryptocurrency platform besides Bitcoin. It is critical to note that Aeternity tokens are projected to sell during the first quarter of 2017. The development of Aeternity’s Blockchain is an emphasis on a common consensus mechanism, execution and a system for proper contract storage, with adequate improvements in system governance. Additionally, the coding system is in Erlang, a fantastic and an industry-proven language for programming.

Malahov’s approach regarding the decentralized processing critically addresses issues related to scale, by propelling the state channel plan to the nth degree, this is according to McConaghy Trent, who is the chief technology officer and the co-founder of BigChainDB. This makes it possibly easier to connect decentralized networks that are emerging.

According to McConaghy, Aeternity could potentially be the IP/TCP of decentralized processing. This is by taking into account the various protocols which govern the communication on the internet between networks.